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Mexico’s Informal Economy Outpaces Overall Growth in Q1 With 4% Gain

INEGI reports a 16‑quarter expansion in informal activity that outpaces GDP growth, with notable gains in Oaxaca and Querétaro.

Overview

  • Informal value added rose 4.0% year over year in the first quarter to about 5.8 trillion pesos, equal to 24.8% of national activity.
  • By comparison, overall GDP value added grew 0.9% annually in the period, underscoring the informal sector’s stronger momentum.
  • Employment in informal units reached 16.4 million people, up 2.7% from a year earlier, extending the longest growth streak since records began in 2005.
  • Within the informal economy, the household-run sector increased 5.6% and represented 57.2% of informal output, according to INEGI’s Meitef.
  • State results varied: Oaxaca led with 9.2% growth and Campeche contracted, while Querétaro logged 4.9% growth with informal wages up 14.8%.